But Will they Eat Their Young?
Reynolds American announced today that it has acquired Niconovum AB for $44 million. Reynolds is the second largest tobacco company in the U.S. marketing cigarettes like Camel, Pall Mall, Winston and Kool. Niconovum sells Zonnic, a product to help people stop smoking. Did I miss something? Is that like writing options against your main product? Is it sort of like GM hiring Ralph Nader as President.
How does the VP of sales for Niconovum convince the VP of sales for Camel that his 20% sales increase is a good thing? And if Pall Mall sales increase, does that call for a lay-off of Niconovum employees?
If this merger proves successful will we see McDonalds making a bid for WeightWatchers? Perdue Chicken buying PETA?
Maybe Reynolds is taking a page out of the Don’s playbook; keeping their friends close, but their enemies closer. Hopefully, the head honchos at Niconovum don’t own any horses.